The agreement provides for the immediate or phasing out of tariffs and barriers to bilateral trade in goods and services originating in the United States and/or Peru. Under the US-Peru Trade Promotion Agreement (TPA), U.S. exports of consumer goods and industrial goods to Peru are no longer subject to tariffs. For agricultural products, tariffs on nearly 90% of U.S. exports have been eliminated and the remaining tariffs will be eliminated by 2026. The TPA also provides favorable access to U.S. service providers, as well as guarantees for the protection of U.S. investors and copyrights, trademarks and patents registered in Peru. In addition, Peru has opened important public procurement contracts for U.S. bidders.

A folk agreement must be negotiated between the two parties before the goods are eligible for this provision. Once a country has negotiated a folk agreement, the goods can be registered under the number HTS 9822.06.25 in addition to their chapter number 1-97. To date, there has been no mutual agreement; a Transmittal Textile Book (TBT) is issued when an agreement is reached. Environmental protection obligations and cooperation: the agreement requires contracting parties to effectively enforce their own national environmental laws and to adopt, maintain and implement laws, regulations and all other measures necessary to meet these obligations. The “Environment” chapter contains a groundbreaking annex to forest sector management, which discusses the environmental and economic consequences of trade with respect to illegal logging and the illegal trade in wild animals. It also contains provisions that recognize the importance of preserving and protecting biodiversity and create a public bidding process with an independent secretariat for the environment to ensure that civil society`s views are properly taken into account. On November 18, 2003, U.S. Trade Representative Robert Zoellick informed Congress of the Bush administration`s intention to begin negotiations for a free trade agreement with countries participating in the Andean Trade Act. [8] However, negotiations began without Bolivia in May 2004, with each of the three remaining Andean countries deciding to pursue bilateral agreements with the United States. After 13 rounds of negotiations, Peru and the United States reached an agreement on 7 December 2005.

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